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					Company Report – INDUSTRIAL GOODS & SERVICES – Hungary – August 10, 2009



RFV                               Buy
                        RFV




Bernadett Papp, +36 1 235 5135 bernadett.papp@erstebroker.hu
                                                                            RFV




HUF mn                           2008      2009e       2010e       2011e                                   52 w eeks
                                                                                   7,000
Net sales                     3,221.0     3,988.8    4,557.3     4,780.0
                                                                                   6,000
EBITDA                          690.3     1,043.5    1,396.3     1,382.9
                                                                                   5,000
EBIT                            560.6       843.3    1,134.6     1,119.2
Net result after min.           298.9       466.0      597.1       642.8           4,000
EPS (HUF)                     149.43       233.01     298.57      321.41           3,000
CEPS (HUF)                    214.29       333.09     429.39      453.26           2,000
BVPS (HUF)                    322.10     1,117.51   1,431.98    1,576.87           1,000
Div./share (HUF)                  0.00       0.00      74.64      160.70                    RFV
                                                                                            DJ EURO STOXX Industrial Goods & Services
EV/EBITDA (x)                      9.3        8.6         6.2         6.1
P/E (x)                           13.4       12.7         9.9         9.2         Performance              12M           6M         3M         1M
P/CE (x)                           9.3        8.9         6.9         6.5         in HUF                -50.0%        52.8%      47.5%       1.7%
Dividend Yield                  0.0%        0.0%        2.5%        5.4%          in EUR                -56.3%        64.1%      55.6%       3.7%

Share price (HUF)                                         2950.00    Reuters               RFVT.BU     Free float                            10.6%
Number of shares (mn)                                          2.4   Bloomberg              RFV HB     Shareholders            Csaba Soós (41.0%)
Market capitalization (HUF mn / EUR mn)                 7,080 / 26   Div. Ex-date                                             József Makra (21.3%)
Enterprise value (HUF mn / EUR mn)                      9,021 / 33   Target price           3,730.0    Homepage:                         www.rfv.hu



Impetus reloaded
– Since the profit warning in April and in the context of a contracted, but still profitable, operation in
  recent quarters, RFV has managed to find business opportunities in the midst of the economic crisis. By
  utilizing the high liquidity in the market, the company increased its capital via public offering to help
  achieve its goals. As a consequence, RFV collected HUF 1.1bn fresh capital, which has gone some way
  towards planned projects totalling HUF 5-6bn, which could double the company’s sales revenues in the
  mid run. We reworked our model to reflect new projects and the changed market environment (i.e.
  increased equity risk premium) and we arrived at a 12-month target price of HUF 3,730 per share,
  indicating a Buy recommendation.

– The newly issued shares increased the number of outstanding shares by 20%, while the shareholders’
  equity increased by more than 150%. On the other hand, the free float increased by more than 10%,
  while the shareholder structure became more diversified. Right now, there is no single shareholder
  holding more than 50%.

– The business opportunities with Fejer County and with other potential new clients led RFV to think
  about how it could solve its emerging problems. RFV found itself faced with (i) good business
  opportunities, but (ii) not enough capital and (iii) much stricter lending criteria from the banks (i.e. a
  much larger sum required from the company’s own funds). This scenario led to the PO, which was an
  attempt to prolong the growth story in spite of the crisis.




Erste Group Research – Company Report August 10, 2009                                                                                        Page 1
Company Report – RFV

                        Changed market environment
                        Hungarian municipalities, RFV’s main clients, already had problems with under-financing before
                        the financial crisis hit, but once confidence disappeared from the market, their situation got even
                        worse.
                        Due to the special project structure of an ESCO (Energy Saving COmpany) company, banks are
                        in reality financing municipalities when they concede loans to RFV. However, with the
                        confidence crisis – parallel to the financial one – banks became more cautious with all their
                        potential partners and raised the requirement for the contribution to loans.

                        At the same time, the Hungarian government plans to cut the state subsidy to municipalities in
                        order to keep the budget deficit within limits from the next year, but it is not clear what kind of
                        activity will be transferred back to the state. In an effort to concentrate on its original ESCO
                        (energy saving) business, RFV ceased some of its activities and now concentrates on new
                        business.

                        The deterioration in some business segments has prompted RFV to abandon some of its earlier
                        plans: it walked away from the plasma torch project, scaled back its activity in oil-from-plastic
                        waste projects, and sold the ski slopes. In spite of the diversification of its activity, RFV has
                        started to concentrate on its original ESCO activity of energy saving solutions. It has gained
                        some large clients for which RFV is able to problem solve.

Plasma                  In connection with the "oil-from-plastic waste" business RFV planned to take part in the R&D of
torch                   the plasma torch project. This is a new reductive technology, which makes possible the total
business:               destruction of plastic waste and also offers possibilities in the elaboration of metals. The
cancelled               company's aim was to build a combined plant with outputs like oil, gas and other materials. RFV
                        planned to take part in the project as financial investor through purchasing a 49% stake in the
                        project company, Mester Kft, for approximately HUF 880mn. RFV wanted to speed up the
                        project, elaborate use opportunities and realize them. The first test for the connection of the two
                        projects ("oil-from-plastic waste" and plasma torch) was planned for March 2009. The technology
                        would have widened the scale of different types of waste that could be used for oil production.
                        The oil produced would have been used in RFV's district heating projects and the additional
                        outputs (like gold, platinum, smut, etc.) could have been sold as well. However, on 15 October,
                        2008 RFV announced that it was stepping back from the plasma torch project to concentrate on
                        ongoing businesses until the end of the financial crisis.

Delay in the            RFV wanted to start the "heating oil-from-plastic waste" project in March 2009, but due to
oil-from-               discussions with Hungarian Customs Authorities (VPOP) it suffered a delay. RFV is awaiting the
waste                   authority’s decision as to whether or not this kind of heating oil is subject to excise tax. (The
project                 production cost of one litre of heating oil is HUF 30-40, while the excise tax could reach HUF
                        140.) Alluding to the opinion of the Ministry of Environmental Protection, RFV thinks that this kind
                        of oil is not subject of the excise tax. At the same time, it seems logical that, in times of a
                        financial crisis, when the government has to tap holes in the budget that it will not give up any
                        opportunity for income. Discussions with the authority could continue until the end of summer
                        2009. The company wanted to use the heating oil in its own projects, which would have meant a
                        cost saving. One "oil-from-plastic waste plant" would have boosted 2009 EPS by HUF 90.

Ski slope               In October 2008 RFV sold its 90% stake in RFV Sípálya (Ski Slope) at face value (HUF10mn) as
business sold           operating ski slopes did not fit into the business portfolio of the company. The contribution of the
to major                ski slope business to RFV's earnings was negligible (gross profit of HUF 0.5mn in 2007).The
shareholders            buyers were the two major shareholders of RFV. Csaba Soós owns 62% and József Makra 38%
                        of RFV Sípálya after the transaction. The transaction did not have material impact on RFV’s
                        P&L.

                        The new opportunities are:

New contract            In 3Q08 the picture was still quite rosy. In September RFV signed a new contract with the
with                    Municipality of Veszprém County (central Hungary) for a 15-year concession for district heating.
Veszprém                The required investment was HUF 260mn and was executed and finished by December 2008.
County                  The contract involves 11 institutions within the Municipality. In 4Q08 RFV had sales revenues of

Erste Group Research – Company Report August 10, 2009                                                                    Page 2
Company Report – RFV

                        approximately HUF 20mn stemming from this contract. The company expects approximately
                        HUF 200mn annual revenues in the coming periods. At the same time, the number of institutions
                        that joined the contract might increase in the near future (the official announcement mentioned
                        10 further possible clients). Therefore, we doubled our annual revenues expectations in our
                        model.

New contract            After a huge time lag, in May 2009 RFV signed a 15-year contract with the Municipality of Fejer
with the                County (central Hungary). The project requires an initial investment of HUF 1.335bn (in 2009)
Municipality            and includes a HUF 504mn rental contract. RFV guarantees 20.5% energy saving in heating. At
of Fejer                the moment, about 40 sites (institutions or groups of institutions) are involved. (This number
County                  might also increase later on.)

Romanian                In the summer, RFV was in talks with the city of Gyergyószentmiklós (Romania) about the
business                modernization of the city's heating system. Romania has great potential for energy saving
delayed                 companies as the majority of the heating system is extremely outdated. The talks included the
                        modernization of the heating systems of about 3,500 apartments and several institutions of the
                        municipality.

                        In the last days of July, the Municipality of Gyergyoszentmiklos held an extraordinary meeting
                        and discussed the topic. It summoned GO S.A., the district heating provider of the town to form a
                        consortium in order to exercise the modernization. Go S. A. announced a tender for the project
                        and RFV submitted its application, which was accepted, but a day later GO S. A. delayed the
                        final decision of the tender. In its official statement, management predicted the chances for the
                        realization of the project as being small. The work would have taken two months and needed to
                        be finished by October, when the heating season starts and really cold weather (heart of
                        Transylvania) arrives.

                        Based on the only figure available (3,500 flats) we can say that this could have been RFV’s
                        biggest contract. At the same time, the modernization would have required a huge amount of
                        capital (approximately HUF 2.7bn), surpassing the possibilities of a city and let alone those of
                        RFV. To finance this project RFV would have needed a bank loan. As there are many
                        opportunities available, we believe that next year at the latest, RFV will take on this kind of
                        project either with Gyergyoszetmiklos or with another city.

                        Capital increase
                        With the authorization of the EGM on August 18, 2008, RFV management announced a capital
                        increase in June 2009. Shareholders authorized management to increase the company's capital
                        by a maximum of HUF 10mn within 5 years, which means 50% of the registered capital.

                        The company offered 400,000 new shares (20% of the actual number of shares) in mid-July.
                        RFV received HUF 1.1bn capital from the issue. The money will be used as deposits on bank
                        loans necessary for forthcoming projects.

                        The subscription period began on 13 July and ended 15 July with a significant oversubscription
                        of 718,645 shares (400,000 shares were offered by the company). According to preliminary
                        data, 215 private investors participated in the subscription. Up to 19,298 shares, everyone
                        received the subscribed amount. The issue price was HUF 2,750 per share.

                        Shareholder structure
                        On 26 June, 2009 OTP fund management increased its stake in the company to 10% via a block
                        trade on the market. Through its different funds, OTP altogether has 371,489 shares (15.48%)
                        right now as it acquired the remainder via the PO. After the public offer, Generali Fund
                        Management reached 40,000 shares (1.66%), East Capital Bering New Europe Fund bought
                        3.58% (85,920 shares) and Aegon Hungary 6.04% (145,000 shares).

                        As a natural consequence, the stake of the two major shareholders Mr. Soós (982,915 shares or
                        41%) and Mr. Makra (510,646 shares or 21.3%) contracted following the secondary share issue,
                        but the free float increased to 10.6% after 4% in 2008. The latter is positive, because it means
Erste Group Research – Company Report August 10, 2009                                                               Page 3
Company Report – RFV

                        also improving liquidity of the shares, which has been a problem until now. We think the stock is
                        on the right path with the free float increase, which might increase appetite for it as well.

                        Shareholder structure, year-end 2008

                                                        Free float, 4%




                                                                             József Makra,
                                                                                 36%

                         Csaba Soós,
                            60%


                        Source: RFV

                        Shareholder structure summer 2009
                                             Free float,
                                               10.6%
                            Aegon, 6.4%                                           József Makra,
                                                                                     21.3%
                         East Capital,
                            3.6%


                           Generali,
                            1.7%


                                                                         Csaba Soós,
                         OTP, 15.5%
                                                                           41.0%
                        Source: RFV



                        Financials

                        Sales breakdown 2008
                                                               Other, 3.1%
                                       Operating,
                                         0.7%
                                                                                 Electricity,
                                                                                   10.3%



                             Kitchen
                          services, 8.4%
                                                                               Public lighting,
                                                                                   9.2%

                                         Heating,
                                     district heating,
                                          68.3%

                        Source: RFV

FY 2008                 In April 2009 RFV published a profit warning and revised downwards its 2008 result. FY 2008
earnings                net profit was only HUF 288.658mn compared to HUF 474.224mn (down almost 40%!) published
revised                 in February. The difference was due to the following factors:
downward
                             -    HUF 37mn financial profit from the RFV-GALGA POWER SYSTEM deal was realized
                                  only in 1Q09.

Erste Group Research – Company Report August 10, 2009                                                                Page 4
Company Report – RFV

                             -    Services worth HUF 100mn registered as inventory in recent years were ‘de-recognized’
                                  from RFV's books due to the expected negative effects of the global financial crisis.
                             -    RFV applied higher depreciation rates (we think probably due to its higher cash flow as
                                  depreciation is unaffected by tax).

                        The company warned also that worsening payment discipline and poor financing of
                        municipalities might put RFV's cash production in danger. RFV initiated the conversion of its
                        HUF-denominated loans to EUR-denominated loan in order to cut financial costs. Future projects
                        will be probably financed in EUR. The company is in talks about a EUR 25mn appropriation.

Despite                 RFV achieved a net profit of HUF 83mn in 1Q09 (+17.3% y/y). Sales revenues dropped by 4.9%
unfavorable             due to the significant fall in revenues from the electricity services segment. (The industry has
market                  recently been liberalized in Hungary and since then it has lost weight in RFV's business
environment,            portfolio.) However, the cost of goods sold decreased in the first three months of 2009 (-17.45%
1Q09 net profit         y/y), therefore gross sales advanced by 14.84%. Operating costs increased just slightly, which
up by 17.3%             caused a 31.68% jump in EBIT (also helped by a HUF 37mn one-off, the consolidation of Galga
                        Power System). Financial costs (+47.04%) increased due to higher interest rates on HUF-
                        denominated loans.

Financing               Raiffeisen Bank announced at the beginning of June that it received a EUR 25mn credit line
problems                from the EBRD, which can be used exclusively for financing energy-saving investments at
solved?                 municipalities. The bank is RFV’s financing partner. The profile of the Hungarian ESCO
                        company corresponds to the specification of the credit line and its clientele consists mainly of
                        municipalities; therefore, there is a good chance that RFV could benefit from the EUR 25mn.
                        (RFV’s contract with the Fejer County [Central Hungary] municipality would require an
                        investment of about HUF 1.85bn.)

                        RFV announced earlier that it was in talks about converting its HUF-denominated loans into
                        EUR-denominated loans and that its future projects would be financed in EUR as well.

                        Facing effects of the financial crisis

                        1H 2009 results of RFV are due mid-August. We expect the financial crisis to drag further on
                        RFV's earnings also in 2Q 2009. With the liberalization of the electricity market RFV lost some
                        contracts which means lower sales revenues (HUF 695mn, -4.9% y/y). This item has been
                        influenced also by the deteriorating paying willingness of some clients. Cost cutting measures
                        seem not being enough to counterbalance the huge financial loss, therefore we expect a 42.5%
                        decline on EBIT level to HUF 150.07mn and a net profit of HUF 79mn (-60.4% y/y).

IFRS consolidated, HUF mn                     2Q 2009e   2Q 2008                1-2Q 2009e        1-2Q 2008
Net sales                                       695.83    731.85    -4.9%          1,406.73         1,479.54      -4.9%
EBITDA                                          193.07    303.01   -36.3%            408.61           477.32     -14.4%
EBIT                                            150.07    261.08   -42.5%            321.91           391.58     -17.8%
Net profit                                       79.03    199.73   -60.4%            162.05           270.52     -40.1%
Operating margin                                27.7%     41.4%                      29.0%            32.3%
Net margin                                      11.4%     27.3%                      11.5%            18.3%
Source: Company data, Erste Group estimates




Erste Group Research – Company Report August 10, 2009                                                                  Page 5
Company Report – RFV

                        Valuation
                        The company has achieved stable cash flow on its operations; therefore, we employed a DCF
                        model as our valuation tool, based on our forecasts for the 2009-2014 period. We used a
                        discount rate based on WACC and a terminal value based on perpetuity. We prepared two
                        models: one conservative and one dynamic. Both models contain the capital increase as a
                        consequence of the successful share issue. The basic assumptions (risk free rate, equity risk
                        premium, effective tax rate, terminal value, etc.) are the same in both versions for the detailed
                        period and perpetuity as well.

                        Our DCF analysis assumed the following:

                        Explicit part (period 2009-2014) WACC of 11.0%

                             •    Risk-free rate at 8.43%. This is the yield for the 10-year Hungarian government bond.
                             •    Equity premium of 6.75%, which is usually applied for Hungarian equities. Due to the
                                  weak performance of the Hungarian economy, we had to increase the equity premium of
                                  Hungarian shares, according by the common Erste Group methodology.
                             •    The 0.72 beta used is close to that of other utility-type companies.
                             •    410bps debt premium was used, as this seems to have been established between the
                                  company and the banks.
                             •    25% effective tax rate applied in Hungary. The effective tax rate has been increased
                                  from our previous model (16%), due to changes in the tax system and the accounting as
                                  well, because local taxes have to be added.

                        Long-term assumptions:

                             •    We set the long-term risk free rate at 5.0%.
                             •    The equity premium is 6.3% also based on the common Erste Group methodology.
                             •    Beta 1 was selected, as is usual in our DCF valuation models.
                             •    Debt premium is the same 4.1%.
                             •    Effective tax rate of 17.5% is expected.
                             •    Terminal value growth rate at 3.0%. It is reasonable considering the high dynamics in
                                  the past and the feature of the business.

                        The first model is a conservative one. We assumed ongoing business, and just one new
                        contract: that with Fejer County. Due to RFV’s potentially good cash producing capacity –
                        applying a conservative approximation – we assumed a dividend payment from 2011. This
                        amount could also be used for new projects as well, instead of paying out. Using that cash for
                        new projects would prolong a higher growth rate and would result in higher value, but we
                        intended to remain on the conservative side.




Erste Group Research – Company Report August 10, 2009                                                                  Page 6
Company Report – RFV

 WACC calculation
                                                            2009e     2010e     2011e          2012e          2013e    2014e (TV)
 Risk free rate                                             8.4%       8.4%      8.4%           8.4%           8.4%         5.0%
 Equity risk premium                                        6.8%       6.8%      6.8%           6.8%           6.8%         6.3%
 Beta                                                         0.7        0.7       0.7            0.7            0.7          1.0
 Cost of equity                                            13.3%      13.3%     13.3%          13.3%          13.3%        11.3%
 Cost of debt                                              12.5%      12.5%     12.5%          12.5%          12.5%         9.1%
 Effective tax rate                                        25.0%      25.0%     25.0%          25.0%          25.0%        17.5%
 After-tax cost of debt                                     9.4%       9.4%      9.4%           9.4%           9.4%         7.5%
 Equity weight                                              42%        42%       42%             42%            42%          64%
 WACC                                                      11.0%      11.0%     11.0%          11.0%          11.0%         9.9%

 DCF valuation
 (HUF mn)                                                   2009e     2010e     2011e          2012e          2013e    2014e (TV)
 Sales growth                                              23.8%      14.3%      4.9%           4.0%          4.5%          2.0%
 EBIT                                                       654.4      838.6     900.6        1,065.4       1,159.6       1,291.2
 EBIT margin                                               16.4%      18.4%     18.8%          21.4%         22.3%        20.0%
 Tax rate                                                  25.0%      25.0%     25.0%          25.0%         25.0%        17.5%
 Taxes on EBIT                                             -163.6     -209.6    -225.2         -266.3        -289.9        -226.0
 NOPLAT                                                     490.8      628.9     675.5          799.0         869.7       1,065.3
 + Depreciation                                              200.2     261.7     263.7         266.2          269.2         272.7
 Capital expenditures / Depreciation                     1051.7%     110.9%    113.7%        116.3%         118.8%       100.0%
 +/- Change in working capital                              -415.7    -170.9    -100.1        -120.9          -18.8         -41.5
 Chg. working capital / chg. Sales                         -54.1%    -30.1%    -45.0%        -63.7%          -8.5%        -40.0%
 - Capital expenditures                                   -2,105.2    -290.2    -299.8        -309.7         -319.9        -330.5
 Free cash flow to the firm                               -1,829.9     429.4     539.3         634.6          800.2        965.9
 Terminal value grow th                                                                                                     3.0%
 Terminal value                                                                                                          14,321.4
 Discounted free cash flow - Dec 31 2009                  -1,648.1     348.4     394.0         417.6          474.2       8,239.9
 Enterprise value - Dec 31 2009                            9,874.0
 Minorities                                                  31.1
 Non-operating assets                                        19.2
 Net debt                                                 3,089.8
 Other adjustments                                            0.0
 Equity value - Dec 31 2009                               6,772.3
 Number of shares outstanding (mn)                            2.4
 Cost of equity                                            13.3%
 12M target price per share (HUF)                         3,003.5
 Current share price (HUF)                                2,940.0
 Up/Downside                                                2.2%

 Enterprise value breakdown                       Sensitivity (per share)
          PV of
         detailed                                                               Terminal value EBIT m argin
          period
                                                             3003     19.0%     19.5%          20.0%          20.5%        21.0%
           0%
                                                            8.9%     3,617.9   3,617.9        3,617.9       3,617.9       3,617.9
                                                  WACC




                                                            9.4%     3,286.9   3,286.9        3,286.9       3,286.9       3,286.9
                                                            9.9%     3,003.5   3,003.5        3,003.5       3,003.5       3,003.5
                                                           10.4%     2,758.1   2,758.1        2,758.1       2,758.1       2,758.1
                                                           10.9%     2,543.6   2,543.6        2,543.6       2,543.6       2,543.6
                                                                                  Terminal   value growth
                                                            3003        2.0%     2.5%           3.0%          3.5%          4.0%
                                                            8.9%     3,003.5   3,286.9        3,617.9       4,009.8       4,480.8
                                                  WACC




                                                            9.4%     2,758.1   3,003.5        3,286.9       3,617.9       4,009.8
       PV of                                                9.9%     2,543.6   2,758.1        3,003.5       3,286.9       3,617.9
     terminal                                              10.4%     2,354.5   2,543.6        2,758.1       3,003.5       3,286.9
       value                                               10.9%     2,186.6   2,354.5        2,543.6       2,758.1       3,003.5
      100%




Erste Group Research – Company Report August 10, 2009                                                                               Page 7
Company Report – RFV

                        Net cash provided by operating activity in our conservative model
                          1,400
                                                                                           1,245
                          1,200                                                 1,160

                                                                        981
                          1,000
                                                             872
                            800                  751

                            600

                            400      300

                            200

                              0
                                    2009e       2010e        2011e     2012e   2013e      2014e
                        Source: Erste Group estimates


                        EBITDA and net margins in our conservative model
                                   EBITDA       Net profit           EBITDA margin      Net margin
                          1,800                                                                35.0%
                          1,600                                                                30.0%
                          1,400
                                                                                               25.0%
                          1,200
                          1,000                                                                20.0%
                            800                                                                15.0%
                            600
                                                                                               10.0%
                            400
                            200                                                                5.0%

                               0                                                               0.0%
                                    2008    2009e 2010e 2011e 2012e 2013e 2014e
                        Source: Erste Group estimates

                        The second, dynamic, model also contains the Fejer County project, but here we added two
                        theoretical new contracts. This first one is about the same magnitude as that with Fejer County.
                        We supposed that RFV will be able to make some result on this as early as 2H09, as numerous
                        projects are in the pipeline. As there are lots of municipalities in Hungary and in the neighboring
                        countries as well facing the same problems (old fashioned and non cost-effective heating
                        systems), we think that a company like RFV with a strong ESCO business has great potential in
                        the future in this area. For this reason we added a third potential project, which has
                        approximately the magnitude of the other two contracts we added to this model for 2009. (This
                        third project could be one single contract or a combination of several different ones.)

                        If such a sizeable project, such as Gyergyoszentmiklos would have been, were to commence
                        this year or be delayed by one year, we found the valuation difference to be just HUF 100-150
                        per share. In other words, a one-year delay in the cash flow generated by this kind of project
                        decreases the DCF-generated fair value by about HUF 100-150 per share.




Erste Group Research – Company Report August 10, 2009                                                                  Page 8
Company Report – RFV

 WACC calculation
                                                            2009e     2010e      2011e          2012e         2013e    2014e (TV)
 Risk free rate                                             8.4%       8.4%       8.4%           8.4%          8.4%         5.0%
 Equity risk premium                                        6.8%       6.8%       6.8%           6.8%          6.8%         6.3%
 Beta                                                         0.7        0.7        0.7            0.7           0.7          1.0
 Cost of equity                                            13.3%      13.3%      13.3%          13.3%         13.3%        11.3%
 Cost of debt                                              12.5%      12.5%      12.5%          12.5%         12.5%         9.1%
 Effective tax rate                                        25.0%      25.0%      25.0%          25.0%         25.0%        17.5%
 After-tax cost of debt                                     9.4%       9.4%       9.4%           9.4%          9.4%         7.5%
 Equity weight                                               31%       31%         31%           31%            31%         43%
 WACC                                                      10.6%      10.6%      10.6%          10.6%         10.6%         9.2%

 DCF valuation
 (HUF mn)                                                   2009e     2010e      2011e          2012e         2013e    2014e (TV)
 Sales growth                                              37.2%      44.6%       4.6%           4.0%          4.3%         2.0%
 EBIT                                                       753.3    1,081.9    1,075.9        1,308.9       1,444.7      1,601.7
 EBIT margin                                               17.0%      16.9%      16.1%          18.8%         19.9%       20.0%
 Tax rate                                                  25.0%      25.0%      25.0%          25.0%         25.0%       17.5%
 Taxes on EBIT                                             -188.3     -270.5     -269.0         -327.2        -361.2       -280.3
 NOPLAT                                                     564.9      811.4      806.9          981.7       1,083.5      1,321.4
 + Depreciation                                              263.7      468.0     539.8          523.9         509.6        496.7
 Capital expenditures / Depreciation                     1580.0%     639.0%      51.3%          54.6%         58.0%      100.0%
 +/- Change in working capital                              -641.1     -545.5    -116.1         -112.6          20.5         -58.0
 Chg. working capital / chg. Sales                         -53.5%     -27.7%    -39.3%         -42.4%          6.8%       -40.0%
 - Capital expenditures                                   -4,166.2   -2,990.2    -277.1         -286.2        -295.7       -305.4
 Free cash flow to the firm                               -3,978.7   -2,256.3    953.5         1,106.7       1,317.9      1,454.7
 Terminal value growth                                                                                                      3.0%
 Terminal value                                                                                                          24,351.3
 Discounted free cash flow - Dec 31 2009                 -3,597.8    -1,844.9    705.0          739.9          796.8     14,293.2
 Enterprise value - Dec 31 2009                          14,690.0
 Minorities                                                  33.8
 Non-operating assets                                        19.2
 Net debt                                                 3,810.3
 Other adjustments                                            0.0
 Equity value - Dec 31 2009                              10,865.1
 Number of shares outstanding (mn)                            2.4
 Cost of equity                                            13.3%
 12M target price per share (HUF)                         4,818.6
 Current share price (HUF)                                2,940.0
 Up/Downside                                               63.9%

 Enterprise value breakdown                       Sensitivity (per share)
                           PV of
                          detailed                                              Terminal value EBIT m argin
                           period
                                                             4819     19.0%      19.5%          20.0%         20.5%        21.0%
                            18%
                                                            8.2%     6,048.8    6,048.8        6,048.8       6,048.8      6,048.8
                                                  WACC




                                                            8.7%     5,379.3    5,379.3        5,379.3       5,379.3      5,379.3
                                                            9.2%     4,818.6    4,818.6        4,818.6       4,818.6      4,818.6
                                                            9.7%     4,342.2    4,342.2        4,342.2       4,342.2      4,342.2
                                                           10.2%     3,932.4    3,932.4        3,932.4       3,932.4      3,932.4
                                                                                   Terminal   value growth
                                                            4819        2.0%      2.5%            3.0%         3.5%          4.0%
                                                            8.2%     4,818.6    5,379.3        6,048.8       6,862.1      7,871.4
                                                  WACC




                                                            8.7%     4,342.2    4,818.6        5,379.3       6,048.8      6,862.1
    PV of
                                                            9.2%     3,932.4    4,342.2        4,818.6       5,379.3      6,048.8
  terminal
                                                            9.7%     3,576.1    3,932.4        4,342.2       4,818.6      5,379.3
    value
    82%                                                    10.2%     3,263.6    3,576.1        3,932.4       4,342.2      4,818.6




Erste Group Research – Company Report August 10, 2009                                                                            Page 9
Company Report – RFV

                        Net cash provided by operating activity in our dynamic model

                          2,000
                          1,800                                                         1,743
                                                                               1,661
                          1,600                                    1,437
                          1,400                            1,269
                          1,200
                          1,000
                                                 773
                            800
                            600
                            400
                                     214
                            200
                              0
                                    2009e       2010e      2011e   2012e       2013e   2014e
                        Source: Erste Group estimates


                        EBITDA and net margins in our dynamic model

                                  EBITDA      Net profit       EBITDA margin      Net margin
                          2,500                                                          35.0%

                                                                                         30.0%
                          2,000
                                                                                         25.0%
                          1,500                                                          20.0%

                          1,000                                                          15.0%

                                                                                         10.0%
                           500
                                                                                         5.0%

                              0                                                          0.0%
                                   2008     2009e 2010e 2011e 2012e 2013e 2014e
                        Source: Erste Group estimates

                        Due to the strong cash-generating power of the new contracts, we assumed that RFV will start to
                        pay out a dividend from its profit in 2011. The company could also repay loans with higher
                        activity from this amount. New projects would be another possibility, but without mention of any
                        such contracts from the company, we preferred to remain on the conservative side assuming
                        that the cash produced will be used for dividend payments to shareholders.




Erste Group Research – Company Report August 10, 2009                                                             Page 10
Company Report – RFV

                        Dividends in our conservative model
                          400
                                                                                  340
                          350

                          300                                          277
                                                               254
                          250

                          200
                                                        161
                          150

                          100

                           50
                                       0
                             0
                                    2010e          2011e      2010e   2011e      2010e
                        Source: Erste Group estimates



                        Dividends in our dynamic model

                          450                                                    423
                          400
                                                                       345
                          350                                 312
                          300
                          250
                                                        192
                          200
                          150
                          100
                           50
                                       0
                             0
                                    2010e          2011e      2010e   2011e     2010e
                        Source: Erste Group estimates



12-month                Our first model led us to a 12-month target price of HUF 3,003. The second, more dynamic,
target price            model led us to a 12-month target price of HUF 4,820.
of HUF 3,730
                                                                      Price                Weight
                        Conservtive                                   3,003                 60%                    1,802
                        Dynamic                                       4,820                 40%                    1,928

                        Target price                                                                               3,731



                        Maintaining a conservative approximation to get a single 12-month target price, we gave 60%
                        and 40% weight to the HUF 3,003 and the HUF 4,820 respectively. This combination of the two
                        12-month target values yielded by the DCF models led us to a 12-month target price of a
                        rounded HUF 3,730 per share, which, in our opinion, reflects the value and future prospects of
                        the company. (This time we left out the peer group comparison, as the DCF calculation seems to
                        offer a more accurate indication of fair value, because companies with an ESCO character have
                        quite stable cash flow and it is very difficult to find peers in the region. (There are peers for
                        individual business arms, but not when taking into consideration RFV’s entire business portfolio.)



Erste Group Research – Company Report August 10, 2009                                                               Page 11
Company Report – RFV

Income Statement                                            2006         2007         2008       2009e        2010e        2011e
(IAS, HUF mn, 31/12)                                    31/12/2006   31/12/2007   31/12/2008   31/12/2009   31/12/2010   31/12/2011
Net sales                                                  947.03     1,873.42     3,221.05     3,988.84     4,557.33     4,779.99
Cost of goods sold                                        -361.34    -1,034.84    -2,067.54    -2,414.96    -2,556.17    -2,756.56
Gross profit                                               585.69       838.59     1,153.51     1,573.88     2,001.16     2,023.42
SG&A                                                      -458.52      -354.08      -592.95      -720.24      -855.71      -893.12
Other operating revenues                                     0.00          0.00        0.00         1.58         1.66          1.70
Other operating expenses                                    -2.11         -4.93        0.00       -11.87       -12.47       -12.78
EBITDA                                                     196.41       574.24       690.27     1,043.52     1,396.29     1,382.94
Depreciation/amortization                                  -71.34       -94.66      -129.71      -200.17      -261.65      -263.71
EBIT                                                       125.06       479.58       560.56       843.35     1,134.64     1,119.23
Financial result                                           -64.15      -121.93      -173.44      -188.91      -296.07      -218.60
Extraordinary result                                         0.00          0.00        0.00         0.00         0.00         -0.00
EBT                                                         60.92       357.65       387.12       654.44       838.57       900.62
Income taxes                                                -8.16       -62.32       -97.76      -163.61      -209.64      -225.16
Result from discontinued operations                          0.00          0.00        0.00         0.00         0.00          0.00
Minorities and cost of hybrid capital                       -0.29       -10.59         9.51       -24.81       -31.79       -32.65
Net result after minorities                                 52.47       284.74       298.87       466.02       597.14       642.81

Balance Sheet                                               2006         2007         2008       2009e        2010e        2011e
(IAS, HUF mn, 31/12)
Intangible assets                                            0.64         0.57        17.13        17.13        17.13       17.13
Tangible assets                                          2,271.48     2,013.32     2,177.87     4,082.93     4,111.50    4,147.60
Financial assets                                             0.59        19.53        19.20        19.20        19.20       19.20
Total fixed assets                                       2,272.71     2,033.41     2,214.20     4,119.26     4,147.83    4,183.92
Inventories                                                 26.24        52.64        93.29       108.11       127.76      131.77
Receivables and other current assets                       193.40       979.02     1,904.88     2,443.67     2,880.72    2,974.91
Other assets                                                 0.00         0.00         0.00         0.00         0.00        0.00
Cash and cash equivalents                                  186.45        93.12       141.49     1,204.06     1,869.18    2,248.66
Total current assets                                       406.09     1,124.77     2,139.67     3,755.84     4,877.66    5,355.34
TOTAL ASSETS                                             2,678.80     3,158.19     4,353.87     7,875.10     9,025.49    9,539.27
Shareholders'equity                                      1,185.95       346.02       644.19     2,235.02     2,863.95    3,153.73
Minorities                                                   4.44        15.78         6.27        31.08        62.87       95.53
Hybrid capital and other reserves                            0.00         0.00         0.00         0.00         0.00        0.00
Pension and other LT personnel accruals                      0.00         0.00         0.00         0.00         0.00        0.00
Other LT provisions                                          0.00         0.00         0.00         0.00         0.00        0.00
Interest-bearing LT debts                                  887.21     1,746.20     2,079.23     3,846.89     4,050.77    4,243.99
Other LT liabilities                                         0.00         0.00         0.00         0.00         0.00        0.00
Total long-term liabilities                                887.21     1,746.20     2,079.23     3,846.89     4,050.77    4,243.99
Interest-bearing ST debts                                   99.42       258.61       446.96       446.96       446.96      446.96
Other ST liabilities                                       501.77       791.58     1,177.22     1,315.16     1,600.94    1,599.06
Total short-term liabilities                               601.19     1,050.19     1,624.18     1,762.12     2,047.90    2,046.02
TOTAL LIAB. , EQUITY                                     2,678.80     3,158.19     4,353.87     7,875.10     9,025.49    9,539.27

Cash Flow Statement                                         2006         2007         2008       2009e        2010e        2011e
(IAS,HUF mn, 31/12)
Cash flow from operating activities                        411.84      -112.76      -155.22       300.14       751.46       871.74
Cash flow from investing activities                     -1,226.42      -979.29      -268.23    -2,105.23      -290.22      -299.80
Cash flow from financing activities                      1,001.03       998.73       477.58     2,867.66       203.88      -192.47
CHANGE IN CASH , CASH EQU.                                 178.98       -93.33        54.13     1,062.57       665.12       379.48

Margins & Ratios                                            2006         2007         2008       2009e        2010e        2011e
Sales growth                                               36.4%        97.8%        71.9%        23.8%        14.3%          4.9%
EBITDA margin                                              20.7%        30.7%        21.4%        26.2%        30.6%        28.9%
EBIT margin                                                13.2%        25.6%        17.4%        21.1%        24.9%        23.4%
Net profit margin                                           5.6%        15.8%         9.0%        12.3%        13.8%        14.1%
ROE                                                         4.8%        37.2%        60.4%        32.4%        23.4%        21.4%
ROCE                                                        6.1%        18.6%        15.8%        15.1%        15.6%        14.9%
Equity ratio                                               44.4%        11.5%        14.9%        28.8%        32.4%        34.1%
Net debt                                                    800.2      1,911.7      2,384.7      3,089.8      2,628.6      2,442.3
Working capital                                            -195.1         74.6        515.5      1,993.7      2,829.8      3,309.3
Capital employed                                          1,990.6      2,273.5      3,035.2      5,355.9      5,555.4      5,691.6
Inventory turnover                                           21.8         26.2         28.3         24.0         21.7         21.2
Source: Company data, Erste Group estimates




Erste Group Research – Company Report August 10, 2009                                                                       Page 12
Company Report – RFV

Contacts
Group Research
Head of Group Research
Friedrich Mostböck, CEFA                     +43 (0)5 0100 - 11902   Dumitru Dulgheru (Fixed income)        +40 21 312 6773 1028
CEE Equity Research                                                  Cristian Mladin (Fixed income)         +40 21312 6773 - 1028
Co-Head: Günther Artner, CFA                 +43 (0)5 0100 - 11523   Loredana Oancea (Equity)               +40 21311 2754
Co-Head: Henning Eßkuchen                    +43 (0)5 0100 - 19634   Eugen Sinca (Fixed income)             +40 21312 6773 - 1028
Günter Hohberger (Banks)                     +43 (0)5 0100 - 17354   Raluca Ungureanu (Equity)              +40 21311 2754
Franz Hörl, CFA (Steel, Construction)        +43 (0)5 0100 - 18506   Research, Slovakia
Gernot Jany, CFA (Banks, Real Estate)        +43 (0)5 0100 - 11903   Head: Juraj Barta (Fixed income)       +421 2 4862 4166
Daniel Lion, CIIA (IT)                       +43 (0)5 0100 - 17420   Michal Musak (Fixed income)            +421 2 4862 4512
Martina Valenta, MBA (Transp., Paper)        +43 (0)5 0100 - 11913   Maria Valachyova (Fixed income)        +421 2 4862 4185
Christoph Schultes, CIIA (Ins., Util.)       +43 (0)5 0100 - 16314   Research, Ukraine
Thomas Unger                                 +43 (0)5 0100 - 17344   Victor Stefanyshyn (Fixed Income)      +38 044 593 - 1784
Vera Sutedja, CFA (Telecom)                  +43 (0)5 0100 - 11905   Svitlana Bazilevich (Equity)           +38 044 593 - 9286
Vladimira Urbankova, MBA (Pharma)            +43 (0)5 0100 - 17343   Maryan Zablotskyy (Fixed income)       +38 044 593 - 9188
Gerald Walek, CFA (Machinery)                +43 (0)5 0100 - 16360   Institutional Sales
International Equities                                               Head of Sales Equities & Derivatives
Hans Engel (Market strategist)               +43 (0)5 0100 - 19835   Michal Rizek                           +44 20 7623 - 4154
Stephan Lingnau (Europe)                     +43 (0)5 0100 - 16574   Brigitte Zeitlberger-Schmid            +43 (0)5 0100 - 83123
Ronald Stöferle (Asia)                       +43 (0)5 0100 - 11723   Equity Sales Vienna XETRA & CEE
Macro/Fixed Income Research                                          Hind Al Jassani                        +43 (0)5 0100 - 83111
Head: Gudrun Egger, CEFA (Euroland)          +43 (0)5 0100 - 11909   Werner Fuerst                          +43 (0)5 0100 - 83114
Alihan Karadagoglu (Corporates)              +43 (0)5 0100 - 19633   Josef Kerekes                          +43 (0)5 0100 - 83125
Rainer Singer (US)                           +43 (0)5 0100 - 11185   Cormac Lyden                           +43 (0)5 0100 - 83127
Elena Statelov, CIIA (Corporates)            +43 (0)5 0100 - 19641   Stefan Raidl                           +43 (0)5 0100 - 83113
Mildred Hager (SW, Japan)                    +43 (0)5 0100 - 17331   Simone Rentschler                      +43 (0)5 0100 - 83124
Macro/Fixed Income Research CEE                                      Sales Derivatives
Co-Head CEE: Juraj Kotian (Macro/FI)         +43 (0)5 0100 - 17357   Christian Luig                         +43 (0)5 0100 - 83181
Co-Head CEE: Rainer Singer (Macro/FI)        +43 (0)5 0100 - 11185   Manuel Kessler                         +43 (0)5 0100 - 83182
Editor Research CEE                                                  Sabine Kircher                         +43 (0)5 0100 - 83161
Brett Aarons                                 +420 223 005 904        Christian Klikovich                    +43 (0)5 0100 - 83162
Research, Croatia/Serbia                                             Armin Pfingstl                         +43 (0)5 0100 - 83171
Head: Mladen Dodig                           +381 11 22 00 866       Roman Rafeiner                         +43 (0)5 0100 - 83172
Damir Cukman (Equity)                        +385 62 37 2812         Equity Sales, London
Alen Kovac (Fixed income)                    +385 62 37 1383         Dieter Benesch                         +44 20 7623 - 4154
Iva Cerovsky (Fixed income)                  +385 62 37 1716         Tatyana Dachyshyn                      +44 20 7623 - 4154
Davor Spoljar (Equity)                       +385 62 37 2825         Declan Wooloughan                      +44 20 7623 - 4154
Research, Czech Republic                                             Sales, Croatia
Head: David Navratil (Fixed income)          +420 224 995 439        Zeljka Kajkut (Equity)                 +38 562 37 28 11
Petr Bartek (Equity)                         +420 224 995 227        Damir Eror (Equity)                    +38 562 37 28 13
Jana Krajcova (Fixed income)                 +420 224 995 232        Sales, Czech Republic
Radim Kramule (Equity)                       +420 224 995 213        Michal Brezna (Equity)                 +420 224 995-523
Martin Lobotka (Fixed income)                +420 224 995 192        Ondrej Cech (Fixed income)             +420 224 995-577
Lubos Mokras (Fixed income)                  +420 224 995 456        Michal Rizek                           +420 224 995-537
Jakub Zidon (Equity)                         +420 224 995 340        Jiri Smehlik (Equity)                  +420 224 995-510
Research, Hungary                                                    Pavel Zdichynec (Fixed income)         +420 224 995-590
Head: József Miró (Equity)                   +361 235-5131           Sales, Hungary
Bernadett Papp (Equity)                      +361 235-5135           Gregor Glatzer (Equity)                +361 235-5144
Gergely Gabler (Equity)                      +361 253-5133           Krisztián Kandik (Equity)              +361 235-5140
Orsolya Nyeste (Fixed income)                +361 373-2830           Istvan Kovacs (Fixed income)           +361 235-5846
Research, Poland                                                     Sales, Poland
Head: Artur Iwanski (Equity)                 +48 22 330 6253         Head: Andrzej Tabor                    +4822 330 62 03
Magda Jagodzinska (Equity)                   +48 22 330 6250         Pawel Czuprynski (Equity)              +4822 330 62 12
Marcelina Hawryluk (Equity)                  +48 22 330 6255         Lukasz Mitan (Equity)                  +4822 330 62 13
Tomasz Kasowicz (Equity)                     +48 22 330 6251         Jacek Krysinski (Equity)               +4822 330 62 18
Piotr Lopaciuk (Equity)                      +48 22 330 6252         Sales, Slovakia
Marek Czachor (Equity)                       +48 22 330 6254         Head: Dusan Svitek                     +48 62 56 20
Wiktor Tymochowicz (Equity)                  +48 22 330 6253         Rado Stopiak (Derivatives)             +48 62 56 01
Research, Romania                                                    Andrea Slesarova (Client sales)        +48 62 56 27
Head: Lucian Claudiu Anghel                  +40 21 312 6773
Mihai Caruntu (Equity)                       +40 21 311 27 54

Treasury - Erste Bank Vienna
Saving Banks & Sales Retail
Head: Thomas Schaufler                       +43 (0)5 0100 - 84225   Roman Friesacher                      +43 (0)5 0100 - 84143
Equity Retail Sales                                                  Helmut Kirchner                       +43 (0)5 0100 - 84144
Head: Kurt Gerhold                           +43 (0)5 0100 - 84232   Christian Skopek                      +43 (0)5 0100 - 84146
Fixed Income & Certificate Sales                                     Fixed Income Institutional Desk
Head: Thomas Schaufler                       +43 (0)5 0100 - 84225   Head: Thomas Almen                    +43 (0)5 0100 - 84323
Treasury Domestic Sales                                              Martina Fux                           +43 (0)5 0100 - 84113
Head: Markus Kaller                          +43 (0)5 0100 - 84239   Fixed Income International & High End Sales Vienna
Corporate Desk                                                       Jaromir Malak/ Zach Carvell           +43 (0)5 100 - 84254
Head: Leopold Sokolicek                      +43 (0)5 0100 - 84601   U. Inhofner/ P. Zagan/ C. Mitu        +43 (0)5 100 - 84254
Alexandra Blach                              +43 (0)5 0100 - 84141   Fixed Income International Sales London
Markus Pistracher                            +43 (0)5 0100 - 84100   Paul Osment/ Simone Pilz              +44 20 7623 4159




Erste Group Research – Company Report August 10, 2009                                                                               Page 13
Company Report – RFV

RFV                                                                                Rating history
                                                                                   Date             Rating     Price   Target Price
 8,000
                                                                                   03. Sep 08        Buy     5900.00       7403.00
 7,000

 6,000

 5,000

 4,000

 3,000

 2,000

 1,000

    0
    Dec 07   Mar 08   Jun 08   Sep 08    Dec 08   Mar 09     Jun 09       Sep 09
                                                  Target price 12 m fwd


Company                          Disclosure
RFV                               3




Erste Group Research – Company Report August 10, 2009                                                                         Page 14
Company Report – RFV


Important Disclosures
General disclosures: All recommendations given by Erste Group Research are independent and based on the latest company, industry and
general information publicly available. The best possible care and integrity is used to avoid errors and/or misstatements. No influence on the
rating and/or target price is being exerted by either the covered company or other internal Erste Group departments. Each research piece is
reviewed by a senior research executive, the rating is agreed upon with an internal rating committee of senior research executives. Erste Group
Compliance Rules state that no analyst is allowed to hold a direct ownership position in securities issued by the covered company or
derivatives thereof. Analysts are not allowed to involve themselves in any paid activities with the covered companies except as disclosed
otherwise. The analyst's compensation is primarily based not on investment banking fees received, but rather on performance and quality of
research produced.


Specific disclosures:
(1) Erste Group and/or its affiliates hold(s) an investment in any class of common equity of the covered company of more than 5%.
(2) Erste Group and/or its affiliates act(s) as market maker or liquidity provider for securities issued by the covered company.
(3) Within the past year, Erste Group and/or its affiliates have managed or co-managed a public offering for the covered company.
(4) Erste Group and/or its affiliates have an agreement with the covered company relating to the provision of investment banking services or
have received compensation during the past 12 months.
(5) Erste Group and/or its affiliate(s) have other significant financial interests in relation to the covered company.

Erste Group rating definitions

Buy                                                                           > +20% to target price
Accumulate                                                                    +10% < target price < +20%
Hold                                                                          0% < target price < +10%
Reduce                                                                        -10% < target price < 0%
Sell                                                                          < -10% to target price
Our target prices are established by determining the fair value of stocks, taking into account additional fundamental factors and news of
relevance for the stock price (such as M&A activities, major forthcoming share deals, positive/negative share/sector sentiment, news) and refer
to 12 months from now. All recommendations are to be understood relative to our current fundamental valuation of the stock. The
recommendation does not indicate any relative performance of the stock vs. a regional or sector benchmark.
Distribution of ratings

                                      Coverage universe               Inv. banking-relationship
Recommendation                        No.          in %                   No.           in %
Buy                                    23          18.3                    4            33.3
Accumulate                             24          19.0                    0             0.0
Hold                                   42          33.3                    5            41.7
Reduce                                 21          16.7                    2            16.7
Sell                                    8           6.3                    0             0.0
N.R./UND.REV./RESTR.                    8           6.3                    1             8.3
Total                                 126         100.0                    12          100.0

Published by Erste Group Bank AG, Neutorgasse 17, 1010 Vienna, Austria.
Phone +43 (0)5 0100 - ext.
Erste Group Homepage: www.erstegroup.com On Bloomberg please type: ERBK <GO>.

This research report was prepared by Erste Group Bank AG (”Erste Group”) or its affiliate named herein. The report was prepared for Erste Group clients. The
information herein has been obtained from, and any opinions herein are based upon, sources believed reliable, but we do not represent that it is accurate or
complete and it should not be relied upon as such. All opinions, forecasts and estimates herein reflect our judgement on the date of this report and are subject to
change without notice. The report is not intended to be an offer, or the solicitation of any offer, to buy or sell the securities referred to herein. From time to time,
Erste Group or its affiliates or the principals or employees of Erste Group or its affiliates may have a position in the securities referred to herein or hold options,
warrants or rights with respect thereto or other securities of such issuers and may make a market or otherwise act as principal in transactions in any of these
securities. Erste Group or its affiliates or the principals or employees of Erste Group or its affiliates may from time to time provide investment banking or consulting
services to or serve as a director of a company being reported on herein. Further information on the securities referred to herein may be obtained from Erste Group
upon request. Past performance is not necessarily indicative for future results and transactions in securities, options or futures can be considered risky. Not all
transaction are suitable for every investor. Investors should consult their advisor, to make sure that the planned investment fits into their needs and preferences
and that the involved risks are fully understood. This document may not be reproduced, distributed or published without the prior consent of Erste Group. Erste
Group Bank AG confirms that it has approved any investment advertisements contained in this material. Erste Group Bank AG is regulated by the Financial
Services Authority for the conduct of investment business in the UK.

Please refer to www.erstegroup.com for the current list of specific disclosures and the breakdown of Erste Group’s investment recommendations.




Erste Group Research – Company Report August 10, 2009                                                                                                             Page 15

				
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